Expedia Group

Last updated

Expedia Group, Inc.
FormerlyExpedia, Inc.
Company type Public
ISIN US65248E2037
Industry Travel technology
PredecessorLiberty Expedia Holdings
FoundedOctober 22, 1996;28 years ago (1996-10-22) (as a division of Microsoft)
Founder Rich Barton
Headquarters Seattle, Washington, U.S.
Key people
Products
RevenueIncrease2.svg US$12.8 billion (2023)
Decrease2.svgUS$1.03 billion (2023)
Increase2.svgUS$688 million (2023)
Total assets Increase2.svgUS$21.6 billion (2023)
Total equity Decrease2.svgUS$2.79 billion (2023)
Number of employees
17,100 (2023)
Website expediagroup.com
Footnotes /references
[1]

Expedia Group, Inc. is an American travel technology company that owns and operates travel fare aggregators and travel metasearch engines, including Expedia, Hotels.com, Vrbo, Travelocity, Hotwire.com, Orbitz, Ebookers, CheapTickets, CarRentals.com, Expedia Cruises, Wotif, and Trivago. [1] Over 3 million lodging facilities and flights on over 500 airlines are bookable on the company's websites. [1] It has 16,500 employees, and its headquarters are located in Seattle, Washington.

Contents

The word "Expedia" is derived from a combination of "exploration" and "speed". [2]

History

Founded as a division of Microsoft in October 1996, [3] Expedia was spun off into a public company in 1999. [4] IAC, known at the time as USA Networks Inc, acquired a controlling interest in the company in 2001 [5] and acquired the remainder of the company in 2003. [6] In August 2005, IAC spun off the company. [7] In December 2011, Expedia, Inc. spun off TripAdvisor. [8]

Management history

In 2003, Rich Barton resigned as CEO and was replaced by Erik Blachford. [9]

In December 2004, Dara Khosrowshahi was announced as CEO. [10]

In March 2017, Chelsea Clinton was named to the board of directors of Expedia, with compensation of $45,000 a year in cash, plus $250,000 a year in stock vesting over three years. [11]

In August 2017, Mark Okerstrom became the President and CEO of Expedia, Inc. [12]

In December 2019, Mark Okerstrom and Alan Pickerill resigned as CEO and CFO, respectively. At that time, Expedia Group's chairman, Barry Diller, took over day-to-day operations, while the Chief Strategy Officer, Eric Hart, became acting CFO. [13]

In February 2020, Expedia announced it was cutting 3,000 jobs, roughly 12% of the workforce, citing a "disappointing 2019." Diller, in his role as acting CEO, stated the company had become "sclerotic and bloated" and that employees were "all life and no work." [14]

In April 2020, Peter Kern was appointed as CEO of Expedia Group. He was the highest paid CEO in the S&P 500 in 2021, with $296 million in total compensation. [15]

Office and headquarters history

In 2015, Expedia announced that it would move its headquarters to the Interbay neighborhood of Seattle, purchasing the Amgen campus on the Elliott Bay waterfront for $228.9 million and investing an additional $900 million on renovation and expansion of the 41-acre (17 ha) campus to 1.23 million square feet (114,000 m2). The first employees moved into the new headquarters in October 2019. [16]

In 2021, Expedia built a new campus in DLF Cyber Park, Gurugram, India. [17]

Acquisition history

DateCompanyBusinessValue (USD)References
March 17, 2000TravelscapeInternet service provider$89,750,000 [18]
March 17, 2001VacationspotInternet service provider$70,850,000 [19]
March 11, 2002Classic Custom Vacations [note 1] Travel agency$78,000,000 [20]
July 11, 2002Metropolitan TravelTravel agency— [21]
October 28, 2002Newtrade TechnologiesReservation software— [22]
April 5, 2004Activity WorldTravel and touring— [23]
April 12, 2004EgenciaTravel agency— [24]
July 15, 2008 Venere.com Hotel Booking Engine€200,000,000 [25]
October 18, 2010MobiataMobile App Developer— [26]
July 21, 2011Your Unlimited AdventuresTravel Management Company$11,400,000— [27]
April 27, 2012VIA TravelTravel Management Company— [28]
March 12, 2013 trivago GmbH Hotel Metasearch Engine€477,000,000 in cash and stock [29] [30] [31]
May 17, 2013Go Adventure ProTravel Agency$11,600,000 [32]
July 6, 2014 Wotif Travel Agency$657,000,000 [33]
October 10, 2014The Ocean AdventuresTravel Agency$10,600,000 [34]
January 14, 2015Around the World Vacation RentalsTravel Agency$12,800,000 [35]
January 23, 2015 Travelocity Travel Agency$280,000,000 [36] [37]
September 17, 2015 Orbitz Travel Agency$1.6 billion [38] [39]
September 28, 2015Mizuho Finances CorpTravel Agency$14,200,000 [40]
November 4, 2015 HomeAway Holiday Rental Service$3.9 billion [41] [42]
October 25, 2018PillowShort-Term Rental Management— [43]
October 25, 2018ApartmentJetShort-Term Rental Management— [44]
August 22, 2019 CanadaStays Holiday Rental Service— [45]

In July 2015, Expedia made an investment in Wingz. [46]

Divestitures

DateAcquirerTarget companyValue (USD)References
April 10, 2005EviivoRezOvation and WebervationsUnknown [47]
March 1, 2021Najafi CompaniesClassic VacationsUnknown [48]
November 2, 2021 American Express Global Business Travel EgenciaUnknown [49] [50]

Delays in refunds of flights cancelled due to COVID-19

In 2020, during the COVID-19 pandemic, customers complained regarding the process to get refunds for cancelled flights. Customers complained of excessively long call times and being unable to get through to a representative. [51] This led to many lawsuits. [52] [53]

Involvement in Israeli settlements

On February 12, 2020, Expedia Group was included on a list of companies operating in West Bank settlements involved in activities that "raised particular human rights concerns" published by the United Nations Human Rights Council. The company was categorized under "the provision of services and utilities supporting the maintenance and existence of settlements". [54] [55]

False advertising and trademark violation

In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC filed a class-action lawsuit in California accusing the company and its partners of violating trademark rights of numerous independent hotel and motel establishments by running advertising implying that consumers could book reservations for those hotels on Expedia even though Expedia had no relationship with those hotels, in violation of the Lanham Act, and also falsely noting that hotels with which the company had no relationship were "sold out". [56] In April 2021, the lawsuit was settled and the company promised not to engage in false advertising. [57]

Australian false advertising suit

South Carolina sales tax suit

In January 2011, Travelscape, a subsidiary of Expedia Inc. based in the Las Vegas Valley, was ordered to pay $6.3 million in back sales taxes to South Carolina by the South Carolina Supreme Court. Travelscape argued that South Carolina's efforts to tax online retailers located out-of-state violate the Dormant Commerce Clause. In a unanimous ruling, the court determined that, while Travelscape does not have physical facilities in South Carolina, frequent sales trips made by its employees and the fact that the company furnished hotel rooms in the state establish its presence for tax purposes and is sufficient to be required to pay sales tax. [58]

Notes

  1. ↑ Classic Custom Vacations was acquired from Global Vacation Group.

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References

  1. 1 2 3 "Expedia Group, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 9, 2024.
  2. ↑ Pokora, Becky (November 3, 2022). "Expedia Rewards: The Complete Program Guide". Forbes .
  3. ↑ "Microsoft Expedia Travel Services Debuts on the Web". Microsoft . October 22, 1996.
  4. ↑ Stein, Tom (September 24, 1999). "Microsoft to Spin Off Expedia". SFGate .
  5. ↑ "USA Networks to buy control of Expedia". CNN . July 16, 2001.
  6. ↑ Hansell, Saul (March 20, 2003). "Big Holder Buying Rest Of Expedia In Stock Deal" . The New York Times .
  7. ↑ "IAC completes spinoff of Expedia travel group". Northstar Travel Group . August 10, 2005.
  8. ↑ "Expedia, Inc. Completes Spin-off of TripAdvisor, Inc" (Press release). PR Newswire. December 20, 2011.
  9. ↑ "Expedia Profit Soars; CEO Barton Resigns". Los Angeles Times . Bloomberg News. February 6, 2003.
  10. ↑ "Dara Khosrowshahi to Succeed Erik Blachford as IAC Travel CEO" (Press release). U.S. Securities and Exchange Commission. November 9, 2004.
  11. ↑ Wattles, Jackie (March 17, 2017). "Expedia names Chelsea Clinton to board of directors". CNN .
  12. ↑ "Expedia, Inc. Announces New CEO". PR Newswire. August 30, 2017.
  13. ↑ "Expedia boots out CEO and CFO, puts Barry Diller in charge". NBC News. December 4, 2019.
  14. ↑ Rosoff, Matt (February 25, 2020). "Expedia cutting 3,000 jobs following 'disappointing' year". CNBC .
  15. ↑ Hudgens, Chris (January 23, 2023). "Men dominated 2021 ranks of highest-paid CEOs in S&P 500". S&P Global .
  16. ↑ Long, Katherine Anne (October 2, 2019). "Expedia campus opens next week to first employees — the Wi-Fi rocks await". The Seattle Times .
  17. ↑ Expedia New Office. September 9, 2021 – via YouTube.
  18. ↑ "Expedia acquires Las Vegas company Travelscape.com for $95 million". Las Vegas Sun . January 31, 2000.
  19. ↑ Clark, Don (February 1, 2000). "Expedia Sets Plans to Acquire Two Online Lodging Firms". The Wall Street Journal .
  20. ↑ "Expedia.Com Expedia, Inc. Completes Acquisition Of Classic Custom Vacations" (Press release). Expedia. March 12, 2002.
  21. ↑ "Expedia agrees to acquire Metropolitan Travel" . American City Business Journals . July 10, 2002.
  22. ↑ "Expedia to acquire Newtrade to enhance merchant hotel product". Northstar Travel Group . October 14, 2002.
  23. ↑ "Expedia agrees to buy Hawaiian tour seller" . American City Business Journals . March 30, 2004.
  24. ↑ Cullen, Drew (March 29, 2004). "Expedia buys Egencia". The Register .
  25. ↑ Andrews, Robert (July 15, 2008). "Expedia Buying European Hotels Site Venere". CBS News .
  26. ↑ Rao, Leena (November 18, 2010). "Expedia Acquires FlightTrack App Developer Mobiata". TechCrunch .
  27. ↑ Savitz, Eric (July 21, 2011). "Expedia's Egencia Unit Buys Your Unlimited Adventures". Forbes .
  28. ↑ Savitz, Eric (March 27, 2012). "Expedia's Egencia Unit Buys Norway-based VIA Travel". Forbes .
  29. ↑ Taylor, Colleen (December 21, 2012). "Expedia Buys Majority Stake In European Hotel Search Site Trivago For $632 Million". TechCrunch .
  30. ↑ Chapman, Lizette (December 21, 2012). "Expedia Acquires Majority of Trivago in Win for Insight Ventures" . The Wall Street Journal . ISSN   0099-9660.
  31. ↑ Jacobs, Karen (December 21, 2012). "Expedia to acquire stake in German hotel site". Reuters .
  32. ↑ "Expedia acquired Go Adventure Pro by Felimo Travels company in Mexico". CBS News . Associated Press. May 17, 2013.
  33. ↑ "Expedia Agrees to Buy Wotif for $658M". CBS News . Associated Press. July 7, 2014.
  34. ↑ "Expedia acquired The Ocean Adventures travel company in Mexico". CBS News . Associated Press. October 10, 2014.
  35. ↑ "Expedia acquired Arround the World Vacation Rentals company in Mexico". CBS News . Associated Press. January 14, 2015.
  36. ↑ "Expedia Buys Travelocity for 280 Million in Cash" . The New York Times . January 23, 2015.
  37. ↑ Dastin, Jeffrey (January 23, 2015). "Expedia Inc acquires Travelocity in $280 million deal". Reuters .
  38. ↑ "Expedia begins integration of Orbitz after deal closes". Reuters . September 17, 2015.
  39. ↑ Lunden, Ingrid (February 12, 2015). "Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline". TechCrunch .
  40. ↑ "Expedia acquired Mizuho Finances Corp company in Mexico". CBS News . Associated Press. September 28, 2015.
  41. ↑ Lardinois, Frederic (November 4, 2015). "Expedia Acquires Airbnb Rival HomeAway For $3.9B". TechCrunch .
  42. ↑ "Expedia to Buy HomeAway for $3.9 Billion" . The New York Times . Associated Press. November 4, 2015.
  43. ↑ Al-Muslim, Aisha (October 25, 2018). "Expedia Buys Pillow and ApartmentJet, Moves More Into Airbnb's Turf" . The Wall Street Journal .
  44. ↑ Levy, Nat (October 25, 2018). "Expedia acquires 2 startups that make it easier to list apartments on HomeAway". GeekWire .
  45. ↑ Menze, Jill (August 22, 2019). "Expedia Group fully acquires CanadaStays to boost vacation rental presence up north". Phocuswire.
  46. ↑ Su, Jean-Baptiste (January 25, 2016). "Wingz Raises $11 Million To Disrupt Airport Rides, Plans Nationwide Expansion". Forbes .
  47. ↑ "eviivo Expands Into North America With Purchase of Expedia Group's RezOvation and Webervations Travel Management Software Services" (Press release). PR Newswire. October 4, 2018.
  48. ↑ Clausing, Jeri (March 1, 2021). "Expedia Group is selling vacation-packager Classic Vacations". Northstar Travel Group .
  49. ↑ "American Express Global Business Travel completes acquisition of Egencia from Expedia Group". egencia.com. November 3, 2021.
  50. ↑ "American Express Global Business Travel completes acquisition of Egencia from Expedia Group". egencia.com. November 2, 2021.
  51. ↑ Ulrich, Todd (February 5, 2021). "Consumers grow frustrated with Expedia over COVID-19 refunds". WFTV .
  52. ↑ "Traveler sues Expedia for refusing refunds on canceled flights during COVID-19 pandemic". USA Today. September 9, 2020.
  53. ↑ RENDA, MATTHEW (August 19, 2016). "Hotels Accuse Expedia, Orbitz of Brazen Deceit". Courthouse News Service .
  54. ↑ "UN rights office issues report on business activities related to settlements in the Occupied Palestinian Territory". Office of the United Nations High Commissioner for Human Rights . February 12, 2020.
  55. ↑ "Database of all business enterprises involved in certain activities relating to Israeli settlements in East Jerusalem and the West Bank (A/HRC/43/71)". ReliefWeb . February 14, 2020.
  56. ↑ "Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. et al". Justia . August 17, 2016.
  57. ↑ IOVINO, NICHOLAS (April 9, 2021). "Expedia Settles False Advertising Class Action With Hotels". Courthouse News Service .
  58. ↑ "Travelscape ordered to pay South Carolina". Las Vegas Review-Journal . January 21, 2011.
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